Ring Energy (REI) Q4 Results - March 7

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THE WOODLANDS, Texas, March 07, 2024 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported record operational and financial results for the fourth quarter and full year 2023, year-end 2023 proved reserves and provided additional 2024 operational and financial guidance.

2023 Q4 and Full Year Highlights and Recent Key Items

Grew fourth quarter total sales volumes 11% to a record 19,397 barrels of oil equivalent per day (“Boe/d”) from the third quarter; < My Q4 production forecast was 19,400 Boepd.

Increased fourth quarter oil sales volumes 13% to a record 13,637 barrels of oil per day (“Bo/d”) from the third quarter; < Higher than my forecast of 13,580 BOPD.

Increased year-over-year total sales volumes by 47% to a record 18,119 Boe/d;

Grew full year oil sales volumes by 32% to a record 12,548 Bo/d from 2022;

Reported net income of $50.9 million, or $0.26 per diluted share, in the fourth quarter;

Net income for the full year was $104.9 million, or $0.54 per diluted share;

Generated fourth quarter Adjusted Net Income of $21.2 million, or $0.11 per diluted share; < Beat my forecast.

Full year Adjusted Net Income was $100.5 million, or $0.51 per diluted share;

Reduced all-in fourth quarter cash operating costs1 on a Boe basis by 4% from the third quarter, and a 6% decrease for the full year;

Achieved record fourth quarter Adjusted EBITDA of $65.4 million — 12% higher than the third quarter;

Grew year-over-year Adjusted EBITDA by 21% to a record $236.0 million;

Delivered record Adjusted Free Cash Flow of $16.3 million and Adjusted Cash Flow from Operations of $55.1 million in the fourth quarter; < Beat my forecast.

Cash flow positive for the 17th consecutive quarter;

Full year Adjusted Free Cash Flow grew 30% to $45.3 million while generating Adjusted Cash Flow from Operations of $197.0 million — a 14% increase;

Generated a Cash Return on Capital Employed (“CROCE”)1 of 17.2% in 2023;

Paid down $3.0 million of debt during the fourth quarter and $30.0 million since closing the Founders Acquisition in August 2023;

Entered 2024 with liquidity of approximately $175 million;

Exited 2023 with $425 million of borrowings and a Leverage Ratio2 of 1.62x;

Ended 2023 with proved reserves of 129.8 million barrels of oil equivalent (“MMBoe”) and a present value discounted at 10% (“PV-10”)1 of $1.6 billion, using Securities and Exchange Commission (“SEC”) pricing;

Proved developed reserves were 88.1 MMBoe with a PV-10 of $1.3 billion ; and

Successfully completed the Company’s 2023 full year capital spending program, including drilling and placing online 20 horizontal (“Hz”) and 11 vertical wells.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We ended 2023 with record fourth quarter and full year operational and financial results on multiple fronts. Year-over-year, we achieved a 47% increase in sales volumes, a 21% increase in Adjusted EBITDA, and a 30% increase in Adjusted Free Cash Flow. Driving our results was the successful execution and integration of the two acquisitions made over the past 18 months, the success of our high rate-of-return drilling and recompletion programs, and our continuing focus on reducing costs. The hard work, dedication, and commitment of our workforce to our value focused, proven strategy delivered these outstanding results and we continue to believe staying the course will build near and long-term value for our stockholders. On behalf of our Board of Directors and management team, I would like to thank our employees for their efforts in making 2023 a very good year.’’

Mr. McKinney continued, “Our focus for 2024 will be very similar to the past. We will continue a disciplined capital spending program designed to organically maintain or slightly grow our oil production with the flexibility to respond as necessary to changing oil and natural gas prices. We intend to allocate our excess cash from operations to reducing debt and improving our balance sheet. We plan to continue seeking to grow through our pursuit of accretive, balance sheet enhancing acquisitions. These efforts should lead us to our ultimate goal, which is to further position our balance sheet and achieve the size and scale necessary to sustainably return meaningful capital to our stockholders. We believe our efforts in 2024 will make important strides towards achieving these goals. We also want to thank our stockholders for their trust and support as we pursue the opportunities and navigate the challenges the future may present.”